Eric Bolling: Still Patient ~ market folly

Tuesday, November 11, 2008

Eric Bolling: Still Patient

Overall, Eric Bolling has been patient lately, and that's been the right play. Protecting capital in this volatile environment is essential and you've got to pick your spots. Here's his latest commentary from his column,

"While doing due diligence scouring stocks, investments, bonds, etc. for the big thing, I have added some positions to my portfolio. I re-entered the SPDR Gold Trust (GLD) trade and U.S. Oil Fund (USO) trade. I am buying these exchange-traded funds and will add to them if the prices of gold and oil start to firm.

My thinking is that after the dust settles and the world realizes that the Democrats in the U.S. Congress, Senate, and White House will spend substantially more than promised during their campaigns, we will reflate. The beneficiaries of reflation are gold and oil as well as other physical commodities. I am steering clear of equities that produce the oil and mine the gold because I am concerned about the tax treatment they may be burdened with in a new era of Washington tax-and-spend politics.

Right now is a time of capital preservation. There will be a time to invest more aggressively, but not yet, in my humble opinion."

I agree with his call on oil as well, which I noted here in my last post of Bolling's commentary. We both may be (and most likely are) early, but I think its setting up as a great position to slowly accumulate over time. Buy some oil here at $60, buy some if it dips to $50, and heaven forbid if it drops all the way down to $40, I'm loading up. I'll have a more detailed post on oil coming here in the next few days, so keep an eye out for that.

You can view the article in its entirety here.

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